1. M contracts to sell to N all the oil to be produced from groundnut harvested from Q’s farm. The crops having been harvested and oil made therefrom, Q fills the oil in the cans supplied by N. Does the property in oil pass to N?

(a)    No, as goods are not in a deliverable state

(b)    Yes, as goods are in a deliverable state

(c)    No, N has not taken the delivery

(d)    Yes, the property in oil passes immediately on formation of contract to sell.

Delivery means voluntary transfer of possession from one person to other person. In this case, N has not taken the delivery of oil cans. So, the property in oil does not pass to N. Options a,b,d, are incorrect.

Hence, option (c) is correct.

2. Which of the following modes of delivery of goods constitutes a valid contract of sale?

(a)    Actual Delivery

(b)    Symbolic Delivery           

(c)    Constructive Delivery

(d)    All of these.

For a valid contract of sale, the delivery of goods may be made by Actual Delivery, Symbolic Delivery or Constructive Delivery. The statements in option a,b,c are correct.

Hence, option (d) is the correct answer.

3. When a person gives keys of his car to another person, it amounts to

(a)    Actual delivery

(b)    Symbolic delivery

(c)    Constructive delivery

(d)    None of these.

When the seller does not physically transfer the goods but does something which has the effect of delivery of the goods to the buyer, it is called as Symbolic Delivery of the goods. So, delivery of keys of the car amounts to a Symbolic Delivery. The options a,c,d are not correct.

Hence, option (b) is the correct answer.

4. Where under the contract of sale, the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is

(a)    Not bound to send them within a month’s time

(b)    Bound to send them within a reasonable time

(c)    May send them at any time he likes

(d)    Buyer responsible to take delivery of goods.

When there is no fixed time for sending goods under the Contract of Sale, the seller is bound to send the goods to the buyer within a reasonable time. Options a,c,d are not correct.

Hence, option (b) is the correct answer.

5. In case of Excess Delivery, a buyer is at liberty to

(a)    Accept the whole

(b)    Reject the whole

(c)    Accept the contracted quantity and reject the rest

(d)    Any of the above

In case of excess delivery, the buyer may Accept the contracted quantity and reject the rest or he may reject the whole or Accept the whole. Statements in all the options a,b,c are correct.

Hence, option (d) is correct answer.

6. In case the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract is treated as

(a)    Subsisting

(b)    Voidable

(c)    Void

(d)    Invalid.

If the seller makes short delivery or excess delivery of goods, the buyer may reject the whole quantity of goods. In this case, the original contract will be unaffected and it will continue to exist. Options b,c,d are not correct.

Hence, option (a) is the correct answer.

7. Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, and the buyer accepts the whole of the goods so delivered, he shall pay for them

(a)    Only for the amount of the goods he ordered

(b)    At the contract rate for whole goods accepted

(c)    At the rate which he thinks fit

(d)    At the rate specified by seller.

Any delivery of more than the contracted quantity is considered as defective delivery. If he accepts the whole, he shall pay for whole of the goods accepted at the contracted rate. Options a,c,d are not correct.

Hence, option (b) is the correct answer.

8. In a contract of carriage through sea, where the seller has to place the goods on board a ship at his own expenses, the contract is known as

(a)    F.O.B. Contract

(b)    C.I.F. Contract

(c)    Ex-ship Contract

(d)    FAS Contract.

In F.O.B. contracts, it is the duty of the seller to place the goods on board a ship and incur the expenses incidental thereto. Options b,c,d are not correct.

Hence, option (a) is the correct answer.

9. In case of Ex-ship contract, during voyage the goods are at the risk of

(a)    Seller

(b)    Buyer

(c)    Jointly by Seller & Buyer

(d)    Shipowner

In case of Ex-ship contract, the goods are at the sellers risk during the voyage. Options b,c,d are not correct.

Hence, option (a) is correct .